REFINANCED: Andrea and Edward Colp Switched from an ARM to a 30-year fi xed loan. Previous rate: 8.69 percent. New rate: 7.05 percent. Previous payment: $2,900 per month. New payment: $2,500. $400 less (Tom Herde/Globe Staff Photo) Tom Herde/Globe Staff Photo

Adjusting expectations

Rising mortgage interest rates are giving homeowners with ARMs a bad case of 'payment shock,' but the certainty of fixed rates comes at a cost too, leaving people with a tough call on what to do

By Ricki Morell

Globe Correspondent / August 13, 2006

E-mail|
Reprints|

Text size – +

Charlie Nilsen refinanced his Wellesley home in 2001, 2002, and 2004, each time with an adjustable-rate mortgage that had a lower interest rate. Next year, though, when his rate is scheduled to reset to 6 percent, from 4 percent, he isn't sure what to do: refinance again or sit tight. (Full article: 1235 words)